Rosneft and CNPC sign 10 year oil supply deal

Russian oil giant Rosneft said on Friday it had signed an agreement with China National Petroleum Corp (CNPC) for the supply of 100 million metric tons of oil to China through Kazakhstan over 10 years.

The agreement follows negotiations that were held during the visit of Russian President Vladimir Putin to Beijing. The crude oil will be processed at factories in northwest China to meet the country's needs for petroleum products, Rosneft said in a statement.

Rosneft, the leading oil exporter to China, provides seven percent of the country’s total demand in crude annually, and the company’s total supplies to the country since 2005 stood at 442 million tons of oil, it said. Rosneft is also one of the leading suppliers of petroleum products to China and since 2009, the company has exported about 41 million tons of petroleum products.

During the Russian president’s vsit, agreements were also signed in the field of low carbon development, digitalisation and technological cooperation.

This includes projects particularly in reduction of greenhouse gas emissions, including methane, technologies of energy efficiency as well as CO2 capture and storage (CCS). Other areas of potential cooperation include low carbon technologies developed by the companies, including “smart” and digital solutions.

According to the statement, cooperation with Chinese partners is also actively being pursued on the Zvezda Shipbuilding Complex project, which is being implemented by a consortium of companies headed by Rosneft.